Government shutdown could delay new crypto ETF approval

The impending U.S. government shutdown may hinder the approval of new cryptocurrency exchange-traded funds (ETFs). Currently, the SEC operates under newly approved guidelines that could expedite the ETF approval process. However, if Congress fails to pass a budget, the SEC will work with limited staff, pausing most operations including the approval of new ETFs. Industry experts emphasize that while this may delay listings, the demand for cryptocurrency investment products remains strong and any disruptions will be temporary. Once operations resume, the SEC is expected to continue processing applications without significant long-term delays. The uncertainty stems from ongoing budget negotiations between Democrats and Republicans, raising concerns about the impact on upcoming crypto initiatives. Additionally, the SEC’s internal guidelines state that during a shutdown, critical staff will only monitor emergency communications, making it unlikely for any new applications to receive attention during this period.

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